The art of trading needs a better grasp of the current market situation, precision and many other ingredients. In fact, you only have to extract profits from price movements. However, you only require improved trading skills and have little to do with the chance to get profitable results.
Around six billion shares of stock are traded on the open market every day. That is why as an investor, you’ve to prepare yourself for any move you’re making. There are many strategies that you can adopt to get profitable results.
However, you can also invest in a trading app to improve your trading skills. Today, we’ll take a look at some practical tips to boost your trading profits.
1. Trade with a multiplier
Cryptocurrencies are known to be famous as trading instruments due to their incredible volatility.
A cryptocurrency can offer a large number of profitable trading opportunities. It is because of its fluctuation of as much as 10 per cent in a day.
Due to an ability to trade on margin, you can turn a relatively small market movement into a chunky profit.
And only happens because of the cryptocurrency derivatives instruments such as futures, options and swaps.
With the help of margin trading, you can temporarily borrow funds to open trades much more significant than they would.
While trading with 150x leverage, a simple one percentage market movement in your favour will make you about 150 per cent profit.
In this case, as a trader, you have to be selective while trading using high leverage.
However, your small move in the wrong direction can cause automatic liquidation.
So that is why it is better to trade with low leverage when the market is less specific.
On the other hand, high leverage is best where the direction of the market can be predicted.
2. Trade on the short side
As I mentioned earlier, cryptocurrency derivatives can turn a slight market movement into a chunky profit.
It will enable trading strategies that are either impractical or downright. The ability to trade on the short side is the most important among the additional possibilities enabled by cryptocurrency derivatives.
However, many cryptocurrencies experience growth throughout their lifetime.
Due to which short cryptocurrencies increase the number of potential trading opportunities.
Moreover, as a cryptocurrency trader, you can extract regular profits from markets that are perpetually bearish.
Using strategies known as short hedges can help traders to employ risk management strategies to protect their spot investments.
You can use this strategy to decrease price risk by locking in the price of a cryptocurrency. It is ideal for traders who are in a long term position.
3. Set automatic alert
How helpful it will be if you are automatically alerted when a specific market moves according to specific rules.
Not only will it save you time, but it will also help you to detect trading opportunities.
Fortunately, you’ll find many apps to set an alert for a wide range of possible scenarios.
The app will let you choose to activate if the scenario above occurred within a predefined time.
4. Use all the available tools
Cryptocurrency exchanges offer a wide range of tools that you can use to improve your trading profitability.
They offer charting tools that will allow you to perform technical analysis on the market.
You can combine charting tools such as trend lines, oscillators and built-in indicators to extract additional insights into the current market situation.
However, it will also let you plot how things are likely to progress. As a trader, you can use charting tools for technical analysis based on your trade decision.
Apart from this, you can also use external tools to make profitable trading decisions.
With these tools, you can aggregate a variety of indicators to produce a single market sentiment score.
However, you can also spot buying and selling opportunities with these tools.
5. Cut down your fees
You indeed require skills, determination and experience to succeed in the world of cryptocurrency.
And together, cutting down trading fees can also help you improve your profitability.
Sometimes cryptocurrency traders can also be a stubborn bunch. They find a cryptocurrency exchange and start working for them and stick with it.
Due to this, traders can pay far more in commission fees than necessary, giving a knock-on effect on trading profitability.
However, sometimes lower fees are not everything. Instead, you have to look for the platforms having the right balance of features and fair prices.
That is why traders trade on exchange platforms with acceptable maker and taker fees.
Hopefully, these tips will help you boost up your cryptocurrency trading profits. As we’re living in a digital world, there is a possibility that cryptocurrency could replace the way we pay for goods and services. You can use apps like Profit Edge to improve your trades. The app will let you learn the abilities to make the best possibilities and receive the highest value.